Canadian real estate prices might be soaring, but mortgage growth is hitting a wall. Bank of Canada (BoC) data shows mortgage credit hit a new record in January 2022. Annual growth is still close to the highest level since 2008, but several signs show we’re past the peak. With rising interest rates shrinking mortgage budgets, […]
Canadians aren’t keen on the prospects of buying a home, according to a mortgage industry report. Mortgage Pros Canada (MPC), a trade association representing mortgage brokers, released its Semi-Annual State of The Mortgage Market. One of the key data points is a consumer survey used to gauge the public’s sentiment on the market. They found […]
Time for your cheat sheet on this week’s top stories. Canadian Real Estate Canadian Real Estate Prices Expected To Drop 24%, Can Crash 40%: Oxford Economics Oxford Economics just warned clients that home prices are in for a correction. The global forecasting firm sees Canadian home prices falling 24% by mid-2024. Previously they expected a […]
Canadian real estate prices are unique due to how expensive it has become, but not when it comes to recent price growth. BMO chief economist Douglas Porter explained, once again, monetary policy drove prices higher. Central banks adopted “hyper-stimulative” policies to drive excess demand to push prices higher. To illustrate this, he contrasts Canada with […]
Canadian real estate prices might be in for a bit of a dip if one of the world’s leading forecasters is right. Oxford Economics’ latest forecast shows home prices falling 24% by mid-2024. Higher interest rates and anti-speculation policies are forecast to begin the price declines this fall. If these measures fail to correct prices […]
Canada’s late 1980s real estate bubble was so big it resulted in a correction lasting over a decade. That might have been small in contrast to where the current one is heading. BMO senior economist Robert Kavcic says affordability is currently stretched with low rates. As rates go through normalization, the bubble is expected to […]
Canadian real estate prices aren’t cooling against the threat of higher interest rates. Canadian Real Estate Association (CREA) data shows it did the opposite in February. Prices were already growing at a fast rate last year, and that rate has nearly doubled since. Loose policy disrupted the real estate cycle, pushing the market into uncharted […]
Time for your cheat sheet on this week’s top stories. Canadian Real Estate Quantitative Sleaze: How The Bank Of Canada Mislead Politicians On Real Estate & QE The BoC Governor Macklem appeared before Parliament’s finance committee a few days ago. The head of the central bank explained quantitative ease (QE) doesn’t impact home prices. We […]
Canadian real estate has a new risk factor catching the attention of regulators — CLPs. Combined Mortgage-HELOC Loan Plans (CLPs), better known as readvanceable mortgages, are fueling higher home prices. That was the take from OSFI, the country’s bank regulator. CLPs are rarely mentioned by regulators, but they’ve come up in several speeches since last […]
We’re only two months into the year but Canada’s real estate market is seeing the inventory story change fast. An analysis from RBC shows key markets have seen inventory improve for February. The bank hesitates to call it a trend, but markets are getting close to “balanced.” As interest rates rise, home sales are expected […]
